Midterm #2 Practice Problems

Midterm #2 Practice Problems - Midterm #2 Practice Problems...

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Midterm #2 Practice Problems 1. Old McDonald’s Farm had the following in its year 2000 inventory: Animal Category u Pigs: Historical Cost, $35,000; Net Realizable ValUe, $32,000; Replacement Cost, $30,000 u Goats: HC, $18,000; NRV, $19,400; RC, $17,400 u Chickens: HC, $14,000; NRV, $11,300; RC, $12,000 ProdUce Category u Corn: HC, $5,000; NRV, $6,200; RC, $5,250 u Wheat: HC, $7,800; NRV, $7,600; RC $7,600 Old McDonald’s profit margin is 35% above historical cost. (a) CompUte the reqUired inventory balance Under LCM Using the item-by-item, category, and total inventory methods. (b) Give the reqUired joUrnal entry, Using the Allowance Method, for the method that redUces net income the least. 2. KaUffman’s had the following inventory balances: Date Price Index Inventory ValUe 12/31/99 100% $100,000 12/31/00 120% $190,000 12/31/01 130% $290,000 idterm #2 Practice Problems https://www.coUrses.psU.edU/acctg/acctg471_adj100/mid2hw.htm of 3 3/27/2011 10:49 PM
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At what value will Kauffman’s report the 2001 layer of inventory under Dollar Cost LIFO? 3.
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Midterm #2 Practice Problems - Midterm #2 Practice Problems...

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